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139 STAT. 244 PUBLIC LAW 119–21—JULY 4, 2025 (b) INFLATION ADJUSTMENT.—Section 6041 is amended by adding at the end the following new subsection: ‘‘(h) INFLATION ADJUSTMENT.—In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to— ‘‘(1) such dollar amount, multiplied by ‘‘(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting ‘cal- endar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.’’. (c) APPLICATION TO REPORTING ON REMUNERATION FOR SERV- ICES.—Section 6041A(a)(2) is amended by striking ‘‘is $600 or more’’ and inserting ‘‘equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)’’. (d) APPLICATION TO BACKUP WITHHOLDING.—Section 3406(b)(6) is amended— (1) by striking ‘‘$600’’ in subparagraph (A) and inserting ‘‘the dollar amount in effect for such calendar year under section 6041(a)’’, and (2) by striking ‘‘ONLY WHERE AGGREGATE FOR CALENDAR YEAR IS $600 OR MORE’’ in the heading and inserting ‘‘ONLY WHERE IN EXCESS OF THRESHOLD’’. (e) CONFORMING AMENDMENTS.— (1) The heading of section 6041(a) is amended by striking ‘‘OF $600 OR MORE’’ and inserting ‘‘EXCEEDING THRESHOLD’’. (2) Section 6041(a) is amended by striking ‘‘taxable year’’ and inserting ‘‘calendar year’’. (f) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to payments made after December 31, 2025. SEC. 70434. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS. (a) ELECTION TO TREAT COSTS AS EXPENSES.—Section 181(a)(1) is amended by striking ‘‘qualified film or television production, and any qualified live theatrical production,’’ and inserting ‘‘quali- fied film or television production, any qualified live theatrical production, and any qualified sound recording production’’. (b) DOLLAR LIMITATION.—Section 181(a)(2) is amended by adding at the end the following new subparagraph: ‘‘(C) QUALIFIED SOUND RECORDING PRODUCTION.—Para- graph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such quali- fied sound recording productions in the taxable year, as exceeds $150,000.’’. (c) NO OTHER DEDUCTION OR AMORTIZATION DEDUCTION ALLOW- ABLE.—Section 181(b) is amended by striking ‘‘qualified film or television production or any qualified live theatrical production’’ and inserting ‘‘qualified film or television production, any qualified live theatrical production, or any qualified sound recording produc- tion’’. (d) ELECTION.—Section 181(c)(1) is amended by striking ‘‘quali- fied film or television production or any qualified live theatrical 26 USC 3406 note.